Question 5 [34]

Willy White Traders, a computer retailer, entered into the following cash transactions during February 2021. They use a perpetual inventory (stock) system. Ignore the effect of VAT on these transactions. The accountant has the following source documents on file for the month:

February 2021: List of duplicate receipts and cash invoices issued

Day	Details	Doc No.	Additional information	Amount received
4	Cash sales	111	Cost of goods = R3 000	R4 040
6	Rent received	RC22	Part of building rented out to Mr Student	R3 000
7	B Brother	RC23	Settlement of account	R4 000
15	Cash sales	115	Cost of goods = R10 000	? (40% above cost)
28	PP Bank	B/S	Direct deposit bank loan	R20 000
28	PP Bank	B/S	Interest received on bank statement	R800

Duplicates of bank deposit slips February 2021:

Dated	Amount
7 February 2021	R11 040
15 February 2021	?

February 2021: List of Cheque counterfoils, EFTs and bank statement debits

Day	Details	Doc no.	Additional information	Amount paid
2	Linda Lost	CF1	Printers bought	R5 000
5	CAN	CF2	Stationery bought	R1 820
12	D Dragon	CF3	Settlement of account	R3 000
16	M Merlin	CF4	Furniture bought	R8 000
20	Local Municipality	EFT	Rates and taxes	R1 200
25	R Rover	CF5	Computers bought	R4 500
28	PP Bank	B/S	Bank charges on statement	R150

Required:

Use the information above to prepare the following:

5.1. Cash book receipts

5.2. Cash Book payments